Performance reviews are leaving many employees feeling less motivated about their future at work, with more than a third reporting a decline in confidence following their most recent appraisal.
New research from recruitment firm Robert Walters found that 35 percent of professionals felt less positive about their role after their last performance review, while only 16 percent said the process left them feeling more optimistic about their future with their employer.
Experts say it suggests performance reviews are becoming increasingly important moments in employee retention, particularly as organisations balance rising workforce expectations against ongoing pressure to control costs.
Pay uncertainty weighs on employee confidence
The research found that only 27 percent of professionals expect to receive a salary review this year. More than half either do not expect a pay increase or are unsure whether one will happen.
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Andrew Powell, chief commercial officer at Robert Walters, said employees increasingly wanted greater clarity around how their contribution was recognised and rewarded.
“Performance reviews are becoming increasingly important management moments, particularly as organisations look to balance worker needs while continuing to manage budgets,” he said. “Employees want to know how their skills are valued, where they can progress and whether the business is investing in their long-term development.”
Many workers, experts say, are using performance and salary discussions to judge their longer-term prospects with an employer rather than focusing solely on short-term pay outcomes.
Retention risks remain high
The survey found that 83 percent of professionals are either actively looking for a new role or would consider a move because of their current salary situation.
Habiba Khatoon, director for the Midlands at Robert Walters, said employees were increasingly seeking reassurance about how their responsibilities and skills were reflected in their compensation.
“At a time when workloads are under increasing strain, professionals need more clarity on how their skills and responsibilities are reflected in their compensation.”
She said performance reviews provided an opportunity for managers to strengthen engagement and productivity by having more transparent conversations about progression and reward.
“Most professionals understand the economic pressures businesses are operating under and recognise that significant salary increases may not always be realistic. But it can be challenging for organisations to keep employees motivated when they aren’t having regular open conversations around progression, future earning potential or how compensation decisions are made.”
Reviews increasingly shape career decisions
The research reveals a broader change in how employees view performance reviews. Rather than being seen primarily as an assessment exercise, appraisals are increasingly becoming conversations about future opportunities, career development and long-term earning potential.
Robert Walters said organisations that provide greater transparency around progression and reward are likely to be better placed to maintain engagement and retain key talent.
The findings form part of the Robert Walters Salary Survey 2026, which examines pay, hiring and workforce trends across the UK labour market. Information from the survey is intended to help employers benchmark pay levels and understand changing workforce expectations.
William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. He is a prolific author and contributor at Workplace Wellbeing Professional, with over 127 published posts covering HR, employee engagement, and workplace wellbeing topics. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers, and broader workplace trends.
- William Furney
- William Furney
- William Furney
- William Furney
